Answer: Fungus, mold or mildew in cypress chips or shredded cypress simply means that the mulch material is breaking down and that it is tightly packed enough to exclude air. The best way to avoid (and control) this is to periodically rake the mulch. Moving it around in this way will incorporate air and allow the bottom pieces to dry out, which will stop mold or mildew growth. This growth won't hurt your plants, but it isn't very attractive.
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